Tilton is chief executive of private-equity firm Patriarch Partners, which specializes in buying and turning around distressed companies

A Brooklyn ambulance company controlled by funds affiliated with Lynn Tilton's private-equity firm filed for Chapter 7 bankruptcy yesterday, disrupting the city's emergency-response system in a move that could result in the loss of 1,200 jobs.

The company, TransCare, has been operating ambulances for 81 shifts daily in the Bronx and Manhattan to some of New York City's largest hospitals, including Mount Sinai, NYU Langone Medical Center and Montefiore Medical Center. Years ago Tilton was branded the "Wonder Woman of Wall Street" for her particular style.

The New York City Fire Department said Wednesday night that it had prepared for such a bankruptcy and would make up for TransCare's absence by providing additional FDNY units on overtime and surveying other private ambulance operators to fill the gap.

"The Fire Department has been aware for several months of the financial difficulties faced by TransCare and has developed contingency plans—both short- and long-term—in anticipation of today's announcement," Fire Commissioner Daniel Nigro said in a statement.

The Greater New York Hospital Association, a trade group, informed its members of the bankruptcy yesterday.

"Given concerns about TransCare's financial situation over the last several months, GNYHA has been monitoring the situation and supporting members' and agencies' contingency planning," GNYHA President Kenneth Raske wrote in the letter.

The company had 1,900 employees in New York, Pennsylvania and Delaware, former Chief Executive Glenn Leland told Crain's in July.

TransCare said in a letter to employees that it had spun off its unit providing paratransit to New Yorkers with disabilities as well as operations in Pittsburgh and the Hudson Valley. Those parts of the business continue to operate as normal.

It said it would liquidate other segments of the business, including operations in New York City, Westchester and Maryland, following "a decision by our senior lender to cease providing additional funding." It clarified in a follow-up letter to employees that the closing segments would not immediately shut down and would be taken over Thursday by a court-appointed trustee to wind down operations.

"We believe that through these restructuring efforts we have been able to save 700 jobs. While we are disappointed that we could not save all the business units and jobs, we are grateful that much of TransCare's history can live on," TransCare wrote.

A TransCare spokesman confirmed the bankruptcy and spinoff of certain operations.

“We are doing what we can to save parts of the business in order to ensure continued service where we can—and to protect as many jobs as possible for our highly-dedicated and loyal employees,” the spokesman said via email Thursday.

Tilton acknowledged the bankruptcy on Twitter Wednesday night.

The legacy & heart of Transcare will live on in the business units & 700 jobs we saved. Very sad certain businesses will wind down.

In its bankruptcy filing, TransCare estimated its assets at between $10 million to $50 million and its liabilities at $50 million to $100 million. The filing reported 200 to 999 creditors, but noted that no funds will be available to unsecured creditors.

Tilton is one of the financial world's most colorful executives. She was described as the "Wonder Woman of Wall Street" after appearing at a magazine interview wearing frosty-pink lipstick, a diamond necklace, a Roberto Cavalli miniskirt, spike-heeled suede boots and a fur-trimmed cape. Some photos taken of her in 1988 dressed in not very much caused a surge of excitement when they appeared on the website Dealbreaker. "I take pride in the fact that I can be all woman in a man's world," she once said. "And, as you may have noticed, I am all woman."

Tilton is chief executive of Patriarch Partners, a private-equity firm that specializes in buying and turning around distressed companies. On its website, the company says it has investments in 75 companies across 14 industries.

Holdings include mapmaker Rand McNally. Last year, the Securities and Exchange Commission sued Tilton, saying she hid poor performance in three funds managed by Patriach. Tilton, a Bronx native, responded by countersuing, arguing that her case should be heard in federal court rather than by an administrative law judge appointed by the SEC. The matter is pending.

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